This Semiconductor Giant Lost $130 Billion Amid US-China Trade Tensions

Last Updated:May 30, 2025, 10:50 IST

Asia accounts for nearly 70% of ASML’s total sales, making it the company’s largest market, though China’s share is expected to decline in 2025

Dutch tech giant ASML has seen a sharp erosion in its market value over the past year, shedding nearly $130 billion (approximately Rs 10.8 lakh crore). Once valued at $429.5 billion in July 2024, the company’s valuation has plummeted to around $297 billion as of May 2025—a staggering decline for one of Europe’s most valuable technology firms.

This substantial decrease in value occurred in less than a year. Crucially, this decline is a result of the ongoing political tensions between the United States and China.

ASML plays a crucial role in the semiconductor industry as the sole manufacturer of EUV (Extreme Ultraviolet Lithography) machines. These machines are essential for chipmakers such as TSMC, Samsung and Intel to produce the most advanced and fast chips.

However, the increasing trade friction between the US and China has severely impacted ASML. The US has imposed a ban on exporting these advanced machines to China, directly affecting ASML’s sales. ASML’s CEO, Christophe Fouquet, previously indicated that their sales in China for 2025 would be lower than in 2023 and 2024.

Recently, ASML has begun shipping next-generation High NA EUV machines, which are expected to remain in demand from major companies like Samsung and Intel in the future. Despite this, some analysts remain optimistic. They believe that a potential trade agreement between the US and Europe could provide market relief.

A report suggests that ASML’s future may improve in 2025 and 2026, particularly given the increasing demand for chipmaking equipment. One analysis forecasts that the company’s stock could rise by about 17% in the coming months.

When Was ASML Founded

ASML Holding N.V., a Dutch company, was founded in 1984 as a joint venture between Philips and ASM International and became independent in 1995.

Headquartered in Veldhoven, Netherlands, ASML manufactures photolithography machines for the semiconductor industry, specialising in extreme ultraviolet (EUV) and deep ultraviolet (DUV) machines, which are vital for producing advanced microchips. The company also offers metrology, inspection systems and software solutions.

In 2023, ASML’s revenue was $30 billion, with the majority coming from Asia (Japan, South Korea, Taiwan, China). Asia is ASML’s largest market, accounting for around 70 percent of total sales, although China’s contribution is expected to decline in 2025.

ASML also has a strong presence in Europe and the US, employing over 42,000 people and working with 5,000 suppliers in 60 countries.

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